<![CDATA[Employee performance is a key determinant of organizational success, particularly for Micro, Small, and Medium Enterprises (MSMEs) that rely on the quality of human resources for their operations. Sanwadekor.id, an MSME in Sukoharjo Regency, faces several challenges, including failure to meet work completion targets, inconsistent work discipline, and suboptimal coordination among team members. This study aims to analyze the impact of transformational leadership and work discipline on employee performance at Sanwadekor.id. A quantitative approach with an explanatory design was employed. The study utilized a sample of 100 respondents selected through purposive sampling. Data were collected via a five-point Likert scale questionnaire and analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with SmartPLS 4.0 software. The results indicate that both transformational leadership and work discipline have a positive and significant effect on employee performance. Work discipline exerts a greater influence on improving employee performance than transformational leadership does. The coefficient of determination (R²) of 0.606 demonstrates that these two variables account for 60.6% of the variation in employee performance. These findings are expected to serve as a basis for Sanwadekor.id to strengthen transformational leadership practices and enhance work discipline, thereby supporting sustained improvements in employee performance.]]>
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